>> production assistance for "inside washington" was provided by allbritton communications and "politico," reporting on the legislative, executive, and political arena. of youn't know how many all saw that last debate. i didn't realize that that will live on my back was that big. -- that bullseye on my back was that big. >> this week on "inside washington," how long can herman cain hang in? mitt romney stumbles into

another flip-flop. >> that will affect our businesses and ability to create jobs in the united states. >> the european debt crisis -- is there a light at the end of the tunnel? >> it is usually financial aid and things like that. >> the crushing burden of student loans. and as the occupy wall street movement gets rougher, a government report confirms that yes, the rich are definitely getting richer. >> the first question that comes to mind is are we still together? captioned by the national captioning institute --www.ncicap.org-- star seems to be fading and mitt romney is still the favorite to win the republican presidential nomination, especially when you

look at his numbers in the early primary states. almost herman cain's nonexistent campaign structure, republicans keep telling us how much it they like him. here he is taking a potshot at mitt romney and the health care plans the. >> many of my years have been providing health care. hillarycare, obamacare, and now i have to fight romneycare to get the nomination. >> easier said than done, mr. cain. peter hart held late focus group that included republicans, democrats, and independence. when he asked which candidate interested them the most, be answered by a large margin was herman cain. you were there, mark. what is it about him that appeal to republicans? >> he is not a politician, that they liked the personal story, up from the bootstraps, the mother a cleaning lady, a

product of morehouse college, probably the most distinguished all-male traditionally black college in the country. and his directness, and his optimism, that is what they like about the guy. >> the cain phenomenon. >> they saw herman cain as a people person. his likability factor is very high. a hard-working businessman, a potential problem solver, someone that people would like to have as their next-door neighbor. the rest of the candidates do not come through that way. they also talked about it. and what comes to mind -- talked about rick perry, and what comes to mind? bully. >> nina? >> he has been a fantastic

salesman all his life. it sounds like a prayer, except it is for pizza -- he has a beautiful voice, by the way. there is a certain level of satire, humor, but he is selling, and that is what he is doing now. what is he selling? >> evan? >> he is not going to be president. he is it an appealing guy, but people are not going to vote him president. the only person who is going to beat romney is romney. >> didn't peter hart asked about herman cain as president? >> it is not a scientific sampling. the value is that you get people to express their feelings and how they talk about these things. there was great resistance, picking up on evan's point, on

herman cain. nobody was willing to say they saw him as president yet. but they find him appealing an intriguing. but he has a long way from making the sale. >> what did they say about barack obama? >> understand this about ohio -- node democrat other than john kennedy has been elected president without carrying ohio. barack obama carried ohio in 2008. they are disappointed in barack obama. the question that colby mentioned, how you feel about the fifth great kid? class clown? star athlete? there was no particular perception of obama. some saw him as the smartest kid in the roo, a so wjla.com

-- some saw him as the smartest kid in the room, others at the loner, a teacher's pet. >> now listen to this. >> i believe that abortion should be safe and legal in this country. >> mitt romney today. >> i am firmly pro-life. >> i am not speaking about the particular ballot issues. i am 110% behind gov. kasich. >> romney has been running a savvy campaign, but he stumbled on this ballot question. will that come back to haunt him? >> if he does this a couple more times, he can get away from this one, but flip-floping -- he has two big problems. one is flip-floping, the other is that he is not that likable. i would not say he has been like

a bull in the debates, but he has been -- strong, and that lika -- likable in the debates, but he has been strong. >> fifth great debate -- they saw him as a rich and privileged kid. one was "to million," the other was "-- "chameleon," the other was "pompous." he has a record a change in position base onto e. is trying to appeal to. >> george will writes that "he is becoming less electable and may endanger the republicans chance of capturing the senate. the republicans have found their michael dukakis." >> george will has a

particularly passionate feelings about abortion. on that cutp-flop pretty deep. that is why this thing in ohio is damaging. i don't know what he was doing there. that was a call in center about that initiative. his staff should have set -- if he did not want to take a position, don't go there, find a dodge, stay out of it. he looks foolish. >> if not romney, who? >> there is nobody else. newt gingrich, i don't think so. rick santorum, i don't think so. perry is turning out to be a blow heartily. -- blowhard bully. >> perry no longer wants to debate? >> he wants to fight when there

is nobody there for a fair fight. >> a former congressman says that if he does not debate, he will come across as a coward. >> he is a great retail campaigner. we are not seeing that. >> you cannot be entirely retail candidate. he is not going to win new hampshire, but in the presidential campaign, retail is the minister apart -- a minuscule part. >> don't write off cain. >> most people i know ended up with the same minimum-wage jobs they had before college, and they are stuck there now. they which did a bunch of money and got a bunch of debt. >> undergraduate borrowing is up by 50% with the nation's college students, and 2/3 apologist

didn't owe more than $28,000 to pay for their education -- 2/3 of college students are more than $20,000 to pay for their education. the president says he is going to give students a break with executive action. critics say that is just a drop in the bucket. we are coming up on an election year, to. >> compared to what they need to do, it underscores how hopelessly powerless government is, that this is the best they can do. >> it is not the best they can do, but it strikes me that obama this week -- you could see the very clear outlines of his campaign in dealing with the idea that people, after three years, are not sure who he is. he came in with hope and change and compromise, but compromise didn't work. now he is going to be the guy -- it took him awhile to realize

it -- he will campaign as essentially the un-congress, "we can't wait." these may be small solutions, but they are not bad in terms of the way they want to appear. >> back to the cincinnati focus group. what are people looking for in a leader? >> what they want in the next president -- strong leader, a tough negotiator. >> if he says "i am going to do this by executive action," that plays into that? >> it undoubtedly helps. what you are talking about is a representative at of millions of young people who are coming out with the equivalent of housing mortgage, an immediate word and they have to deal with.

they don't have jobs or the means -- it is based on the promise that you can pay this back. it is going to put them in an economic position where they will be able to compete in the system. i think the president had to act. the country have to act. >> wasn't something going to relieve this in 2014, and why? >> you have that newt gingrich actually responding to the president's initiatives by saying is nothing more than a ponzi scheme. that is the state of our politics now. something had to be done. but it is not a matter of solving the problem. everybody cannot or should not get a college degree in this country. they are going to have to rethink what education means in the country, what skills we do need in the country, and maybe change the path that we have been on that the way to success is 8 baccalaureate degree. >> colby is onto something.

this four-year education -- there is evidence that not a lot happen for kids in college. term ends at that figure this out -- germans have figured this out. they have better vocational training, and you learn something worth while instead of just going to the front house -- frat house. a lot of our colleges just don't do that. >> the unemployment rate across the western world, among people who have gone to college and graduate, a 4.4%. among those who have not completed, 11.5%. you can understand that if you are interested in your child having a job, you want to encourage him or her to go to college and get the four-year degree, even though the argument is a possible one. >> what about the mortgage executive action, veterans'

jobs? is that what to have an impact? >> yes, but is not going to move the needle a great deal. to maket go to congress legislative changes, substantive legislative changes, then you are not going to see a large change. what is important gets back to the point that was made out in cincinnati. it is leadership and determination to do something. the question always is, will he sustained the action, or continue this kind of approach -- >> that is the sort of important about the market to things, because the banks have bought into the mortgage things. it will give a great many people access to renegotiate the mortgage and have more money in approving the economy, but it has to be executed well. if it is not, it will not make a difference. >> going back to romney -- let

the market hit bottom, let the market work this out, no relief for a homeowner who is under water. >> the european rescue plan. >> 0 will do what it takes to safeguard financial stability -- europe will do what it takes to safeguard financial stability. >> it will lay the predicate for long-term economic growth around world. >> europe cut a deal to reduce debt. bankers agreed to write off half of what the greek government owes. our stock market love to that news, colby. >> i have a lot of questions here. i think back to my days representing the u.s. at the world bank. we lectured the third world about the lack of political will to make necessary changes. we beat of africa, we beat up

asia for their failure to stand up and make the adjustments necessary. in this country, we cannot address our owned does the problems -- our own deficit and debt problems. there is the question of the political will. it is lacking in industrialized countries as well. >> i don't think there's any disagreement about the need to long-term cutback what we spent in government, but in a period of time when we are just coming out of a deep recession, the deepest since the great depression, if you have to much austerity, you put -- you put all of us back into recession. >> growth of 2.5% in the last quarter. >> that is not enough. better than nothing. we are still really on the cost. -- on the cusp.

you see the layoffs that have gone on in state and local government. you are seeing exactly what happens. it is a chain reaction. >> can congress, with of the 9% approval rating, do something like they have done in europe? >> no. apparently the super committee is not going to be able to get a solution, which means that these automatic cuts are scheduled to go into effect. but they won't, because they have a year to go into effect, and that means congress can undo them. the only thing congress can do is to undo the automatic cuts. that means the united states government is going to basically do nothing for the 2012 elections. the first time anything positive could happen would be sometime maybe in 2013. >> that is what congress will do with a 9% approval rating?

nothing? >> i am not as sure as evan is, because there is an imperative in both parties, staring at the abyss of the 9%, seeing themselves all struck down in a tidal wave. the hopes of the western world rest on at the not-broad shoulders of a little woman from east germany -- [laughter] merkel, the go to guy on this whole thing. the united states, because of our financial problems, don't have the resources to do anything about it. we can be a cheerleader, and that is about it. as far as congress is concerned, the end of the war in iraq will give them an opportunity to start with defense cuts, may be creatively and imaginatively, in meeting the application -- >> but that's bogus! >> i'm talking about coming to an agreement.

you are suggesting automatic cuts are going to -- >> where is the agreement? you have democrats still say we can solve this with a combination of cuts and tax increases, you have republicans saying we will do it only for cuts. boehner said that recently as this week -- >> nothing is going to happen unless -- >> what will happen is there will be a reaction if we fail to act. downgrading the credit rating -- they have reasons to lose confidence in our ability to address problems if we fail to act. >> that brings us to the gap between the very rich and the rest of america. >> we are going to come back stronger every time. it is a direct violation of our first amendment rights to assemble. >> occupy los angeles protester responding to words that they will be asked to move. oakland, they were asked to move along and got bloody. a new congressional budget

office report reveals that yes, there is a huge gap between the richest americans and everybody else. after-tax income for the wealthiest 1% group 275% the past 30 years, 30% for the middle class. >> if john boehner and the republicans persist in saying that they are not going to consider tax increases on people who are very rich, even though that may not be able to balance the budget, still, taking that position is a slap in the face to most people. 3/4 other people -- you look at these polls, 3/4 think the very rich should pay more in taxes. it is reflected in the tolerance of a movement that is pretty and artistic in some ways in its goals -- anarchistic in some ways in its goals.

>> you think it has legs? >> i think it will peter out soon. it has some staying power, but the cbo report draws sharp attention to the proposals coming out of the republican candidates, all of which are skewed towards the wonder of citizens who need it the least. -- the one at a group of citizens who need it the least. >> absolutely nothing is going to happen meaningful unless you're really does have a meltdown. yes, they dodged a bullet this week, but their problems with italy, huge problems still to face. you could still have a european clubs that would trigger an american cops, that would triple its political crisis, that might produce people getting together to do something. >> cheerful scenario. [laughter] >> doomsday scenarios --

>> 2005, 2007, the after-tax income of the top 1/5 was greater than the other income of the other 80%. a rising tide lifts all yachts. that is what we're looking at. the distribution of income is come in the final analysis, and national security issue and it has to be examined it that way. >> colby, if charles krauthammer were here, he would say that socking it to the rich is not going to make a difference. we need honest to god tax reform. >> he would say economic growth as well. it is not a matter of soaking the rich, it is a matter of making sure people pay their fair share. those are earning more than 200 to $2,000 a year -- more than $250,000 a year, a substantial

amount of income would come to the treasury. >> what about the tax plans of the various candidates? >> perry, romney together, 9-9- 9, or 9-0-9, all skewed towards the -- >> the irony is that jon huntsman has a great plan, actually charles' plan. crud in theiall the tax code. all the economists agree it is a great way to go. no intention of ever. >> -- no attention whatsoever. >> why is it jon huntsman getting any attention? >> he missed a great chance -- chris wallace's requested, would you accept $10 in cuts for $1 of

tax increase? that was his chance to say "i am different." >> every presidential campaign as somebody who the press likes because they are smart, thoughtful, and that's been successful. -- and have been successful. bruce babbit was like that years ago. for some reason, that individual flames out. >> is it too early to say he has flamed out? >> he has a spending -- he is the spending in all on new hampshire. with closing loopholes and deductions, rick perry promised to do that. he comes out with a plastic that is 20% maximum -- a plan that is 20% maximum, but also gives you the option of going under the existing system, encouraging the deductions and loopholes. >> i been studying the recovery plan. i cannot figure it out. -- i and studying the rick perry

plan. i cannot figure it out. it would make the tax code more complicated. >> instead of just letting the plan sit out there, he raised the question on everybody's mind, is barack obama born in the united states? >> for the record, he said he thinks he was. >> three days. >> he says he was just having some fun. tax plans. >> the bigger question is what is going to happen to congress? what is going to happen in the senate? in the senate, something like 33 up next year, 23 democratic seats. there is a good chance that republicans could actually get what they needed to take over the senate. >> not if they picked romney,

according to george will. >> there is a connection. >> george will did go on record saying that the next president of the united states would be tim pawlenty, mitch daniels, or barack obama. he is in the position of backing barack obama. [laughter] >> i think he would probably argue with that. >> none of us are pure in the production department. >> tim pawlenty would have been a good candidate, and he was the first to go. >> huntsman does not show up in nevada. explain that. >> the fight was whether new hampshire would have to force the date to december. nevada did back off. >> last word. nevada backs off. see you next week.